On Monday, the Supreme Court ordered the real estate giant Jaypee to deposit Rs. 2,000 crores by 27th October. It also asked the company to come up with a plan within 45 days on how it will protect homebuyers’ interest.
The Supreme court also restrained the directors of Jaypee Infratech from traveling abroad.
The Chief Justice of India, Dipak Mishra said, “We are not concerned about the company, we are only concerned about home buyers.”
The court also handed the management of Jaypee Infratech over to insolvency resolution professionals. The professionals will have to lay down a plan for 30,000 buyers. The buyers have expressed their concern of the insolvency proceedings against Jaypee, would end up putting the buyers in trouble without any compensation.
The insolvency proceedings against Jaypee were confirmed by the Allahabad bench of National Company Law Tribunal on 9th August. This came after IDBI Bank that acts as the consortium of lenders to the construction firm sent a petition that Jaypee failed to pay a Rs. 526 crores loan.
The court also stated, “We understand the plight of home buyers. We are not concerned about interests of companies but are concerned about middle class home buyers who are paying EMIs.”
The plea was filed by Chitra Sharma, a flat buyer and 23 others looking for protection of their rights as home buyers.
